In August, Georgia commemorated the ninth anniversary of its five-day war with Russia over the breakaway regions of Abkhazia and South Ossetia and the 25th anniversary of the war in Abkhazia. Although years have passed since the hostilities, the conflicts remain unresolved while the political situation around the two de facto entities as well as Russia-Georgia relations remain tense. Russia’s President Vladimir Putin visited Abkhazia and reiterated Russia’s military support for the region. In the preceding months, Russia increased its military pressure on Georgia by conducting large-scale military exercises in South Ossetia and Abkhazia. In parallel, Russia continues the illegal demarcation of the so-called frontier between Georgian-controlled territory and the separatist regions, moving the occupation line further into Georgian territory.

Foreign investment in Georgia is strengthening the country’s importance in connecting East Asia with Europe, which has positive implications for the broader region. The rise in FDI in commercial and transportation infrastructure in combination with the signing of international free trade agreements will reduce Georgia’s vulnerability in terms of economic and, ultimately, ‘hard’ security. The growing importance of the South Caucasus as node for EU-China trade will weaken Russia’s incentives to undermine its southern neighbors by military, political, and economic means as it has done in the past. Accordingly, Tbilisi’s ability to conduct an independent foreign policy is set to improve despite the absence of Western security guarantees.

The Trump administration will soon undertake a comprehensive review of Russia-US relations and U.S. policy toward the rest of Eurasia. Although the new team will presumably consider many options, the president-elect’s statements imply that the U.S. will not soon support further NATO expansion or other actions that would strongly antagonize Moscow. Despite this limitation, the U.S. government will continue security ties with U.S. partners in Eurasia, such as Georgia. In practice, there are a number of steps the U.S. and Georgia can undertake to advance their mutual security.

On October 2, China and Georgia signed a preliminary free trade agreement (FTA), scheduled to take effect from the end of 2017, China’s first substantive FTA negotiations in Eurasia. The FTA’s 17 sections include trade goods, services, intellectual property rights and emerging issues like e-commerce, with the two parties agreeing to remove all tariffs for most of the two nations’ commodity trade, as well as pledging to open many service sector markets and improve bilateral trade laws while identifying key areas for enhancing cooperation.

Despite the negative political discourse, pessimism and apathy shown by a historically low voter turnout in Georgia’s parliamentary elections in October, there are tangible reasons to be cautiously optimistic. When compared to other post-Soviet nations, Georgia is far ahead in terms of many economic and governance indicators. The main question moving ahead is how the ruling Georgian Dream (GD) party will use its newly-gained supermajority in parliament. The hope is that the ruling party will lead in an inclusive and non-unilateral way – respecting opposition viewpoints – while enacting responsible policies and reforms.

The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.